Charter's Reorg Confirmed by Court
Charter Communications’ plan of reorganization has been confirmed by the United States Bankruptcy Court for the Southern District of New York. Charter initially filed its plan and Chapter 11 petitions on March 27, 2009.
Upon the reorganization plan becoming effective, Charter expects to generate positive free cash flow through the reduction of more than $830 million in annual interest expense from its previous debt load.
Existing shares of the company’s common stock will be cancelled. Paul Allen will continue as an investor, and will retain the largest voting interest in the company. The company intends to apply for listing of its new common stock issued in accordance to the plan on NASDAQ not earlier than 45 days after emergence.
Charter anticipates that certain objectors may appeal the Court’s confirmation of the plan, as well as seek to stay the proceedings. Unless a court orders a stay of the confirmation while an appeal is pending, Charter expects to move forward with satisfying the conditions to the plan and anticipates the plan becoming effective even if an appeal is still pending.
